US interest expense is near $750 BN, most of the US debt is based on bonds under 5 yrs, that is the front end of the yield curve, and the last thing the US wants is a collapse in tax revenue at the hands of a recession (say due in 2023).
Because when the tax revenue falls, and interest expense remains high (subject to inflation levels, the energy inflation will be the issue) the US ratio of tax revenue to interest expense becomes tighter and dangerously close to insolvency. What does this mean? Well think Argentinian economic woes.
Yes the US economy is headed into a Argentinian economic issues with US characteristics. Some sort of capping of interest rates is coming (yield curve control lite) in 2023 and this will lower the US dollar and expand the central bank balance sheets.
Chart 1 - The US 30 yr interest rate must come down.
Chart 2A - Gold and Silver stocks are ready for the upside.
Chart 2B - Gold and Silver stocks are ready for the upside.
Chart 3 - Silver looks ready to move higher, eventually!
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